Here's Why KRUK Spólka Akcyjna's (WSE:KRU) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• KRUK Spólka Akcyjna will host its Annual General Meeting on 23rd of June
• Total pay for CEO Piotr Krupa includes zł3.46m salary
• The total compensation is similar to the average for the industry
• KRUK Spólka Akcyjna's total shareholder return over the past three years was 80% while its EPS grew by 6.0% over the past three years

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Performance at KRUK Spólka Akcyjna (WSE:KRU) has been reasonably good and CEO Piotr Krupa has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 23rd of June. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for KRUK Spólka Akcyjna

How Does Total Compensation For Piotr Krupa Compare With Other Companies In The Industry?

At the time of writing, our data shows that KRUK Spólka Akcyjna has a market capitalization of zł7.6b, and reported total annual CEO compensation of zł3.5m for the year to December 2024. We note that's an increase of 11% above last year. In particular, the salary of zł3.46m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Poland Consumer Finance industry with market capitalizations ranging from zł3.7b to zł12b, the reported median CEO total compensation was zł4.3m. From this we gather that Piotr Krupa is paid around the median for CEOs in the industry. Furthermore, Piotr Krupa directly owns zł678m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	zł3.5m	zł3.1m	99%
Other	zł26k	zł40k	1%
Total Compensation	zł3.5m	zł3.2m	100%

Speaking on an industry level, nearly 62% of total compensation represents salary, while the remainder of 38% is other remuneration. KRUK Spólka Akcyjna has gone down a largely traditional route, paying Piotr Krupa a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

KRUK Spólka Akcyjna's Growth

Over the past three years, KRUK Spólka Akcyjna has seen its earnings per share (EPS) grow by 6.0% per year. In the last year, its revenue is up 22%.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has KRUK Spólka Akcyjna Been A Good Investment?

Most shareholders would probably be pleased with KRUK Spólka Akcyjna for providing a total return of 80% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

KRUK Spólka Akcyjna pays its CEO a majority of compensation through a salary. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which is potentially serious) in KRUK Spólka Akcyjna we think you should know about.

Important note: KRUK Spólka Akcyjna is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.